Attaining financial stability is a necessity for every Nigerian. There are financial mistakes that could be detrimental to your financial life, and they should be completely avoided. It is important to have a good financial life where you have enough at retirement and even some for the next generation. In achieving financial stability in Nigeria, you need to make intentional plans and endure little sacrifices. These financial mistakes can take you from a place of wealth to a place of poverty, very quickly. Here are some financial mistakes you must avoid at all costs.
Living Paycheck to Paycheck
One major financial mistake that can affect you is the act of living from paycheck to paycheck. Living from paycheck to paycheck means you only have enough to survive till the next paycheck. So if a source of income gets lost or delayed, you would have little or nothing left. Although it may seem like you have enough to sustain you till the next income, the moment there is an eventuality with your income flow, you will get completely broke. Try not to finish your money even when you’re expecting more. Always have some money left in your account.
No/ Little Savings
Savings is an income set aside for future purposes. A crucial financial mistake you must avoid is having no savings. Besides how detrimental it would be to your future finances, it could also put you in danger. Emergencies happen from time to time that could make your life difficult if you don’t have savings. Without savings, you won’t have emergency funds. In other words, if an unexpected problem occurs – a medical issue, a house or car issue, or a job loss, you won’t have any money to fix the issue. Without savings, you would start borrowing even without a good repayment plan. Having no savings would also make it difficult to make buying decisions like a new car, house, wedding, and other events. No matter how little or much you receive, always save some for the rainy day.
No Financial Plan
Another detrimental financial mistake you can make is to have no financial plan. A financial plan contains your spending budget, investment plan, and savings plan. It also contains plans for accessing more income, your goal towards earning a certain amount of money, and how to achieve it. It doesn’t take a lot of time to plan your finances, but it is a necessity. Before an income comes in, have a budget for your spendings, savings, and investment. Don’t just create a financial plan; ensure you follow through with the plan. You need to have a good plan for your finances. Make it a priority.
There is a highly believed myth that only the rich invest. This myth has made a lot of people make the crucial mistake of having no investment. Investment is the only way to earn without working. It keeps generating income without work. Investments are done for futuristic purposes such as- children’s education/ upkeep, wedding, retirement, medical bills, and so on. Even with little income, you still need to invest in the future. There are numerous safe investments you can make with good returns and no risk. One of which is Sycamore. Sycamore is a peer to peer lending platform, where investors enjoy great returns. Visit www.sycamore.ng to get started today.